U.S. to give contract for student loan servicing to one company

WASHINGTON, May 19 (Reuters) - The U.S. Education Department said on Friday it was changing its approach to student-loan servicing, awarding a contract to handle outstanding debts to one company.

Under former President Barack Obama, much of the $1.3 trillion business of student lending was moved from banks and other companies to the federal government. Four companies still handled servicing the loans.

"We're confident that the final decision will have someone who steps up and can perform," Acting Undersecretary Jim Manning said on a call with reporters. (Reporting by Lisa Lambert; Editing by Jonathan Oatis)